A promotion is the advancement of an employee's
Rank is the relative position, value, worth, complexity, power, importance, authority, level, etc. of a person or object within a ranking
A ranking is a relationship between a set of items such that, for any two items, the first is either "rank ...
or position in an organizational
A hierarchy (from the Greek: , from , 'president of sacred rites') is an arrangement of items (objects, names, values, categories, etc.) in which the items are represented as being "above", "below", or "at the same level as" one another. Hierarch ...
system. Promotion may be an employee's reward for good performance, i.e., positive appraisal. Before a company promotes an employee to a particular position it ensures that the person is able to handle the added responsibilities by screening the employee with interviews and tests and giving them training or on-the-job experience. A promotion can involve advancement in terms of designation,
A salary is a form of periodic payment from an employer to an employee, which may be specified in an employment contract
An employment contract or contract of employment is a kind of contract
A contract is a legally binding agreement that def ...
Benefit or benefits may refer to:
Perks and social welfare
* Benefit (social welfare), provided by a social welfare program
** Federal benefits, provided by the United States federal government
* Credit card#Benefits and drawbacks, Credit card, an ...
, and in some organizations the type of job activities may change a great deal. The opposite of a promotion is a
A demotion is a compulsory reduction in an employee
Employment is a relationship between two party (law), parties, usually based on employment contract, contract where work is paid for, where one party, which may be a corporation, for profit, no ...
A promotion involve advancement in terms of designation, salary and benefits, and in some organizations the type of job activities may change a great deal. In many companies and public service organizations, more senior positions have a different title: an analyst who is promoted becomes a "principal analyst"; an economist becomes a "senior economist"; or an associate professor
becomes a "full professor". The amount of salary increase associated with a promotion varies a great deal between industries and sectors, and depending on what parts of the hierarchical ladder an employee is moving between. In some industries or sectors, there may be only a modest increase in salary for a promotions; in other fields, a promotion may substantially increase an employee's salary.
The same is true with benefits and other privileges; in some industries, the promotion only changes the
A title is one or more words used before or after a person's name, in certain contexts. It may signify either generation, an official position, or a professional or academic qualification. In some languages, titles may be inserted between the firs ...
and salary, and there are no additional benefits or privileges (beyond the psycho-social benefits that may accrue to the individual). In some
A nonprofit organization (NPO), also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in contrast with an entity that o ...
organizations, the values of the organization or the tightness of funding may result in there being only modest salary increases associated with a promotion. In other industries, especially in
The private sector is the part of the economy
An economy (; ) is an area of the production
Production may be:
Economics and business
* Production (economics)
* Production, the act of manufacturing goods
* Production, in the outline of indust ...
companies, a promotion to senior management may carry a number of benefits, such as
employee stock option
Employee stock options (ESO) is a label that refers to compensation contracts between an employer and an employee that carries some characteristics of financial options.
Employee stock options are commonly viewed as an internal agreement prov ...
s, a reserved
A parking space is a location that is designated for parking, either paved or unpaved. It can be in a parking garage, in a parking lot or on a city street
250px, Street in downtown Bucharest (Romania)
A street is a public thoroughfare i ...
corner office A corner office in Brea, California
A corner office is an office
An office is generally a building
A building, or edifice, is a structure with a roof and walls standing more or less permanently in one place, such as a house or factory ...
with a secretary, and bonus pay for good performance. The degree to which job activities change varies between industries and sectors. In some fields, even after an employee is promoted, they continue to do similar work. For example, a
Policy analysis is a technique used in public administration to enable civil servants, Activism, activists, and others to examine and evaluate the available options to implement the goals of laws and elected officials. The process is also used in ...
in the federal government who is promoted to the post of senior policy analyst will continue to do similar tasks such as writing briefing notes and carrying out policy research. The differences may be in the complexity of the files that the individual is assigned to or in the sensitivity of the issues that they are asked to deal with. In other fields, when an employee is promoted, their work changes substantially. For example, whereas a staff engineer in a
Civil engineering is a professional engineering
Regulation and licensure in engineering is established by various jurisdictions of the world to encourage public welfare, safety, well-being and other interests of the general public and to defin ...
firm will spend their time doing engineering inspections and working with
A blueprint is a reproduction of a technical drawing or engineering drawing using a contact print process on light-sensitive sheets. Introduced by Sir John Herschel in 1842, the process allowed rapid and accurate production of an unlimited numbe ...
s, a senior engineer may spend most of their day in meetings with senior managers and reading financial reports. In
An orchestra (; ) is a large instrumental ensemble typical of classical music
Classical music is art music produced or rooted in the traditions of Western culture, including both Religious music, liturgical (Religion, religious) and secula ...
s, when a musician such as a violinist is promoted to the position of
The concertmaster (from the German language, German ''Konzertmeister'') is the leader of the first violin section in an orchestra (or clarinet, oboe, flute in a concert band) and the instrument-playing leader of the orchestra. After the Conducti ...
, their duties change substantially. As a violin player, the individual played the music as part of the violin section. As a concertmaster, the individual plays solo parts, decides on the bowings and interpretation of the music, and leads the violins during performances.
Different organizations grant the hiring and promoting managers different levels of discretion to award promotions. In some parts of the private sector, the senior management has a very high level of discretion to award promotions, and they can promote employees without going through much procedures or formalities such as testing, screening, and interviewing. In the
The public sector (also called the state sector) is the part of the economy composed of both public service
A public service is a service
Service may refer to:
:''(See the Religion section for religious activities)''
* Administ ...
An academy (Attic Greek
Attic Greek is the Greek language, Greek dialect of the regions of ancient Greece, ancient region of Attica, including the ''polis'' of classical Athens, Athens. Often called classical Greek, it was the prestige (sociol ...
, there are usually many more
checks and balances
Separation of powers refers to the division of a state (polity), state's government into branches, each with separate, independent power (social and political), powers and responsibilities, so that the powers of one branch are not in conflict ...
in place to prevent favoritism
or bias. In many Western public service bodies, when a manager wants to promote an employee, they must follow a number of steps, such as advertising the position, accepting applications from qualified candidates, screening and interviewing candidates, and then documenting why they chose a particular candidate. In academia, a similar approach is used, with the added safeguard of including several layers of committee review of the proposed promotion using committees which include members of other faculty and experts from other universities.
The Peter Principle is a concept in management
Management (or managing) is the administration of an organization, whether it is a business, a not-for-profit organization, or government body.
Management includes the activities of setting ...
* Ethnic penalty
A glass ceiling is a metaphor used to represent an invisible barrier that prevents a given demographic (typically applied to women) from rising beyond a certain level in a hierarchy.Federal Glass Ceiling Commission''Solid Investments: Making Fu ...